Golden Triangle deal now headed to court
Toll Brothers, E. Bruns. file respective lawsuits
BY VINCENT TODARO Staff Writer
What was once hoped to be a financial boon for East Brunswick is now the subject of a legal battle.

Toll Brothers, the redeveloper of the Golden Triangle on Route 18, is expected to sue the township, charging that it failed to approve site plan and other changes the developer sought to make in response to changing market conditions. Toll Brothers filed a notice of tort claim with East Brunswick last week, alerting the town of its intention to file a lawsuit.

The town, meanwhile, is filing a suit of its own against the Pennsylvania-based builder, citing inadequate time to review its requests. The countersuit claims default and breach of contract by the builder, according to Mayor David Stahl.

The legal wrangling comes three months after Toll Brothers sent a letter to the township saying that economic conditions were forcing it to reconsider aspects of the project. The developer, who four years ago agreed to buy the land from the township for $35 million, had approval to build 402 residential units and more than 180,000 square feet of retail space, replacing the existing retail uses on the site such as Sam's Club and Jason's Furniture.

In its Nov. 7 letter, Toll Brothers said there is no market for housing at this time, and the project as approved is "not economically viable." In fact, the builder said it would likely cost more to build the residential units than the price at which they could be sold. It asked township officials to consider changes such as eliminating the residential component and increasing the commercial uses.

East Brunswick officials said they intended to negotiate with Toll Brothers, but in December the Township Council adopted a $25 million bond ordinance that could be used to buy back the Golden Triangle, if necessary.

Stahl, who voted for the redevelopment deal as a councilman and inherited the questions surrounding its future when he took over as mayor last month, expressed anger and frustration with the development firm this week.

"I'm outraged," he said. "Enough is enough."

Stahl said he and the council had agreed to consider the changes that Toll Brothers mentioned in its November letter. However, he said the builder was demanding that the township make all the concessions it sought by the end of December.

Stahl said that when he met with Toll Brothers in November, the company noted its desire to change the plans to consist entirely of commercial uses. However, the builder had yet to provide exhibits or specifics regarding those changes and what outcome they might have on the township, he said.

"They did not provide details, especially the economic ones," Stahl said. "They gave us a rough conceptual plan, from a developmental standpoint."

Toll Brothers did indicate that it wanted the site to have two "big-box" retail stores, likely including the existing Sam's Club store, Stahl said. Such larger retail uses were not included in the redevelopment

plan, which called for smaller, one- and two-story shops and restaurants.

Stahl said he told Toll Brothers that he did not have enough information to make any decisions. On Dec. 12, Toll Brothers provided the exhibits, but insisted the council make a decision by the end of the month, according to Stahl. The builder warned it would terminate the deal if the demands were not met, he said, adding that he did not feel the council could make an informed decision within the desired timeframe.

"I would not rush into it," he said.

On Dec. 28, Toll Brothers, which has been sending the township annual payments of at least $4 million for the purchase, submitted its payment for the year along with a letter of termination, Stahl said. The town responded with a notice of default, and gave Toll Brothers 30 days to withdraw the termination.

Stahl said the township indicated a willingness to meet and discuss the proposed amendments to the plan. However, Toll Brothers would only meet if the township first withdrew its notice of default, he said, noting that there was no way East Brunswick would do that as long as the builder asserted its right to terminate.

"They do not want to meet with us," the mayor said. "It's disconcerting. I'm outraged, quite frankly. They will not sit down and talk with us."

Stahl said the exhibits Toll Brothers presented to the township indicated that the developer would not pay any more of the $13 million it still owes, until the project is built out and the profitability of the new uses is known. Toll Brothers has paid about $22 million thus far toward the $35 million purchase, Stahl said.

According to the mayor, the developer wanted a situation in which it could pay the township less if it completes the project and finds that it is worth less than was originally anticipated.

The mayor said he believes Toll Brothers is trying to get the township to ''act under duress."

A Toll Brothers vice president in charge of press relations did not return a phone call or an e-mail seeking comment for this story.